Research On The Application Of Export Credit Insurance Avoiding The Risk Of Foreign Trade Enterprises

Export credit insurance is a non-profit national fiscal policy insurance business which provided insurance reserves by the country fiscal. It is providing risk protection and financial support for the export trade and other economic activities. Export credit insurance promoted the export trade strongly as an important economic areas of international finance and international trade intersect, which support the export enterprise international development. Although China’s export credit insurance started late, after years of development, its functions had improved and its effects on export trade obvious gradually. Though China’s export credit insurance business has developed, it is compared with other countries are still have significant gaps. Export credit insurance penetration in Western Europe is20%to25%, even up to34%in France currently. While China is only10%, insurance companies of export enterprises less than8%.which is in stark contrast to the rapid growth of China’s foreign trade. In order to better play the role of export credit insurance to avoid the risk of trade exports to China to promote the development of China’s trade and fully reflects its policy, there is still a long way to go. So the study of export credit insurance risk aversion has practical significance extremely.Export credit insurance risking the aversion is the theme of this paper. In this paper, we combined literature and case study analysis method. First of all, it defined the concept of export credit insurance, credit expounded the connotation and denotation, and the concept, characteristics and types of export credit insurance. Secondly,after finish the elaborate abort the status of China’s export credit insurance, it typed export credit insurance major risk into political risk and commercial risk. Then I used case analysis method and citied examples of export credit insurance as well as its promotion of trade data. Analysis of situation of China’s export use credit to avoid risk, is the focus of this paper, from the collection risks, exchange rate risk, financial risk, management risk and the establishment of early warning mechanism and so on and it analyzed in detail. Then the article analyzed the existing problems. The main problem will be analyzed as follows:the process of export credit insurance business is very cumbersome; higher rates of export credit insurance and lack of the way of coverage. China’s export enterprises risk awareness is weak, poor awareness of insurance; export business insurance application’s cycle is too long, insurance rates are too high. Along with the actual situation in Tianyu company management research. Finally, in order to better play the role of export credit insurance to avoid the risk, and puts forward relevant countermeasures from three aspects of enterprises. Analysis for the government:the government should establish export credit insurance risk fund, constructed information sharing platform, such as the construction and perfection of information platform and smooth channels of information; establish a risk fund compensation mechanism of effective supply risk fund; increase our government support for export credit insurance. Export credit insurance institutions should establish export credit insurance operation and management mechanism, lower fees, underwrite in flexible ways, simplify procedures, reduce the cost, to guide business. Export enterprises cut the cost of insure, strengthen credit risk management consciousness. Then from the follow aspects to improve the insurance financing ability:the expansion of export credit insurance services, strengthening cooperation, enhancing the service function of export credit insurance.China has carried out the export credit insurance business for some years. It has played a very important role to promote the development of China’s international trade. While when compared with developed countries, export credit insurance support and development efforts in China is still not enough and its scale is still relatively low. It also reflects our export credit insurance business has great potential to develop on the other hand. How to use export credit insurance for export enterprises is playing a "safety valve" and then manage risk, which none the less is a wise move. This article focuses on the export credit insurances’function about risk aversion, and combined with some China’s enterprise business practice. The article put forward the problems and solved them.